• Voyager Digital’s exposure to 3AC could pose serious issues for the company, analysts say
  • Three Arrows owes Voyager 15,250 bitcoins and $350 million in USDC

Voyager Digital has issued a notice of default to Three Arrows Capital, as the company claims the hedge fund failed to make payments on a loan of 15,250 bitcoins, worth about $315 million on Monday, and $350 million in USD Coin (USDC).

“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” Voyager CEO Stephen Ehrlich said in a statement Monday.

Voyager, a publicly-traded crypto platform founded in 2018, allows investors to trade more than 100 cryptoassets and earn up to 12% yield on various tokens.

Voyager’s platform continues to operate and fulfill customer orders and withdrawals, and its liquidity levels remain healthy, the company added. 

As of June 24, 2022, Voyager had approximately $137 million in cash and owned cryptoassets on hand, the statement said. 

“The Company also has access to the previously announced US$200 million cash and USDC revolver and a 15,000 BTC revolver from Alameda Ventures Ltd,” the statement said. 

The notice of default comes as cryptocurrency industry members continue to evaluate the contagion risks following the apparent collapse of Three Arrows Capital and crypto lender Celsius

“At the end of the day, what market participants should take away is that risk management is one of, if not the most, critical aspects of the crypto lending space,” Bill Barhydt, CEO of Abra, said. “It has been an issue in this space for years, and now we are seeing it first-hand with multi-billion dollar enterprises.” 

Compass Point Research and Trading analysts Chris Allen and Alessandro Balbo said in a research note last week that Voyager’s exposure to Three Arrows Capital “raises survivability questions” for the company.

Three Arrows Capital has not publicly responded to the notice of default and did not immediately respond to Blockworks’ request for comment. A spokesperson from Voyager declined to comment further.

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  • Blockworks
    Senior Reporter
    Casey Wagner is a New York-based business journalist covering regulation, legislation, digital asset investment firms, market structure, central banks and governments, and CBDCs. Prior to joining Blockworks, she reported on markets at Bloomberg News. She graduated from the University of Virginia with a degree in Media Studies. Contact Casey via email at [email protected]
  • Ben Strack is a Denver-based reporter covering macro and crypto-native funds, financial advisors, structured products, and the integration of digital assets and decentralized finance (DeFi) into traditional finance. Prior to joining Blockworks, he covered the asset management industry for Fund Intelligence and was a reporter and editor for various local newspapers on Long Island. He graduated from the University of Maryland with a degree in journalism. Contact Ben via email at [email protected]